A

PROJECT REPORT

On

PRODUCT STATERGIES OF FMCG (HINDUSTAN UNILIVER LIMITED.)

Submitted To

KURUKSHETRA UNIVERSITYKURUKSHETRA

In the partial fulfillment of the Bachelor of degree of Commerce in Advertising, Sales promotion and sales management.

(Session 2010-2011)

Under Guidance of:

Miss Shivani Puri

Lecturer in Commerce

D.A.V College for Girls

Under Supervision of: Submitted By:

Mrs. Vivek Narula Juhi

Lecturer in Commerce. Class: B.Com. IID.A.V College for Girls Roll No: 20092016

University Roll No.

D.A.V COLLEGE FOR GIRLSYAMUNA NAGAR

DECLARATION

I, JUHI here by declare that project report “PRODUCT STATERGIES OF FMCG (HUL)”.

Assigned to me for the requirement of the degree of B.COM with advertising marketing and

sales promotion from Kurekshetra University, is the original work and done by my personally

and the information provided in the study is the authenticated to the best of my knowledge.

The study has not been submitted to any other institution of University for the award of any

degree. If this statement is wrong I shall be personally liable the consequences.

JUHI

B.COM IInd

ROLLNO.20092016

ACKNOWLEDGEMENT

First and foremost I would like to convey my sincere thanks to all mighty God, and then MISS

SHIVANI PURI (lecturer in commerce) of D.A.V GIRLS COLLEGE YAMUNANAGAR. She

has been source of perpetual inspiration to me. She gently guided and inspired me towards a

bright career through my course. I was very fortunate to have herself as my project guide. She is

willing to give all kind of support and encourage me with her valuable suggestions.

I also owe my special thanks to the Principal “MS. SUSHMA ARYA” for providing the project

title “PRODUCT STATERGIES OF FMCG (HUL)”. The special course with the required

equipment in our college. I am also thankful to MRS. VIVEK NARULA (lecturer) in commerce

for helping in making this project report.

Juhi

B.COM IInd

PREFACE

The main objective of the project is familiarization with the necessary theoretical inputs and to

gain sufficient practical exposure to establish a distant linkage between the conceptual

knowledge acquired at the institute and practices those concepts.

The project is concerned with the “PRODUCT STATERGIES OF FMCG(HUL).” .During

my tenure of research, I studied the various development tools and deeply analyzed the

functions.

Prior to making reference to working of the project prepared, the analysis and feasibility and all

the other aspect were taken into consideration.

CONTENTS

Introduction

Introduction to Organization

Industry profile

Approach to study

Objective to study

Research Methodology

Database report Gathered

Data Interpretation and Analysis

SWOT Analysis

Findings and Bibliography

Findings

Limitations

Suggestions

Bibliography

Questionnaire

INTRODUCTION

INTRODUCTION TO ORGANISATION

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG

products that have a quick turnover, and relatively low cost. Consumers generally put less thought into

the purchase of FMCG than they do for other products. Though the absolute profit made on FMCG

products is relatively small, they generally sell in large numbers and so the cumulative profit on such

products can be large.

FMCG industry is innovative, full of rich experience, reaches world wide, people working with

FMCG may get frequent opportunity to travel meet new culture, gets experience very quickly

and chances to rise in status is much easier

Unlike other sectors FMCG shares float in a steady manner irrespective of market dip world

wide. So basically, fast moving consumer goods are pretty awesome.

This The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in

the country and over the years has been growing at a very steady pace. The sector consists of

consumer non-durable products which broadly consists, personal care, household care and food

& beverages. The Indian FMCG industry is largely classified as organized and unorganized. This

sector is also buoyed by intense competition. Besides competition, this industry is also marked

By a robust distribution network coupled with increasing influx of MNCs across the entire value

chain sector continues to remain highly fragmented.

The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production,

distribution and marketing of consumer packaged goods, i.e. those categories of products that are

consumed at regular intervals. Examples include food & beverage, personal care,

pharmaceuticals, plastic goods, paper & stationery and household products etc. The industry is

vast and offers a wide range of job opportunities in functions such as sales, supply chain,

finance, marketing, operations, purchasing, human resources, product development and general

Management. Global leaders in the FMCG segment are Sara Lee, Nestlé, Reckitt Benckiser,

Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.

The FMCG industry is volume driven and is characterized by low margins. The products are

branded and backed by marketing, heavy advertising, slick packaging and strong distribution

networks. The FMCG segment can be classified under the premium segment and popular

segment. The premium segment caters mostly to the higher/upper middle class which is not as

price sensitive apart from being brand conscious. The price sensitive popular or mass segment

consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly

brand conscious. Products sold in the popular segment have considerably lower prices than their

premium counterparts. Following are the segment-wise product details along with the major

players:

INDUSTRY PROFILE

Fast Moving Consumer Goods ( FMCG )

FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot

of thought, time and financial investment to purchase. The margin of profit on every individual

FMCG product is less. However the huge number of goods sold is what makes the difference.

Hence profit in FMCG goods always translates to number of goods sold. Fast Moving Consumer

Goods is a classification that refers to a wide range of frequently purchased consumer products

including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents,

other non-durables such as glassware, bulbs, batteries, paper products and plastic goods, such as

Buckets. ‘Fast moving’ is in opposition to consumer durables such as kitchen appliances

That is generally replaced less than once a year. The category may include pharmaceuticals,

consumer electronics and packaged food products and drinks, although these are often

categorized separately.

The term Consumer Packaged Goods (CPG) is used interchangeably with Fast Moving

Consumer Goods (FMCG).

Three of the largest and best known examples of Fast Moving Consumer Goods companies are

Nestlé, Unilever and Procter & Gamble. Examples of FMCGs are soft drinks, tissue paper, and

chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe. The

FMCG sector represents consumer goods required for daily or frequent use.

The main segments of this sector are personal care (oral care, hair care, soaps, cosmetics, and

toiletries), household care (fabric wash and household cleaners), branded and packaged food,

beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery

products) and tobacco. The Indian FMCG sector is an important contributor to the country's

GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory

Employment in India. The industry also creates employment for 3 m people in downstream

activities, much of which is disbursed in small towns and rural India. This industry has witnessed

strong growth in the past decade. This has been due to liberalization, urbanization, increase in the

disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the

reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of

personal care companies to attract the burgeoning affluent segment in the middle-class through

product and packaging innovations .Unlike the perception that the FMCG sector is a producer of

luxury items targeted at the elite, in reality, the sector meets the every day needs of the masses.

The lower-middle income group accounts for over 60% of the sector's sales. Rural markets

account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have

been present in the country for many decades. But in the last ten years, many of the smaller rung

Indian FMCG companies have gained in scale. As a result, the unorganized and regional players

have witnessed erosion in market share.

HISTORY OF FMCG

In India, companies like ITC, HUL, Colgate, Cadbury and Nestle have been a dominant force in

the FMCG sector well supported by relatively less competition and high entry barriers (import

duty was high). These companies were, therefore, able to charge a premium for their products. In

this context, the margins were also on the higher side. With the gradual opening up of the

Economy over the last decade, FMCG companies have been forced to fight for a market share. In

the process, margins have been compromised, more so in the last six years (FMCG sector

witnessed decline in demand).

CURRENT SCENARIO

The growth potential for FMCG companies looks promising over the long term horizon, as the

per-capita consumption of almost all products in the country is amongst the lowest in the world.

As per the Consumer Survey by KSA Techno pak, of the total consumption expenditure, almost

40% and 8% was accounted by groceries and personal care products respectively. Rapid

urbanization, increased literacy and rising per capita income are the key growth drivers for the

sector. Around 45% of the population in India is below 20 years of age and the proportion of the

young population is expected to increase in the next five years. Aspiration levels in this age

group have been fuelled by greater media exposure, unleashing a latent demand with more

money and a new mindset. In this backdrop, industry estimates suggest that the industry could

Triple in value by 2015 (by some estimates, the industry could double in size by 2010).

In our view, testing times for the FMCG sector are over and driving rural penetration will be the

key going forward. Due to infrastructure constraints (this influences the cost-effectiveness of the

supply chain), companies were unable to grow faster. Although companies like HUL and ITC

have dedicated initiatives targeted at the rural market, these are still at a relatively nascent stage.

The bottlenecks of the conventional distribution system are likely to be removed once organized

retailing gains in scale. Currently, organized retailing accounts for just 3% of total retail sales

and is likely to touch 10% over the next 3-5 years. In our view, organized retailing results in

discounted prices, forced-buying by offering many choices and also opens up new avenues for

growth for the FMCG sector. Given the aggressive expansion plans of players like Pantaloon,

Trent, Shopper’s Stop and Shoprite, we are confident that the FMCG sector has a bright future.

MAJOR PLAYERS IN FMCG SECTOR

Britannia India ltd

Dabur India ltd.

Marico

Nirma ltd.

Cadbury India ltd

Cargill

Coca-cola

Colgate-Palmolive India

Hj Heinz co.

HUL

Nestle

Pepsi co.

Procter & Gamble

Jyothy Laboratories

TOP FMCG COMPANIES IN INDIA

1 Hindustan Unilever Ltd.

2 ITC (Indian Tobacco Company)

3 Nestlé India

4 GCMMF (AMUL)

5 Dabur India Ltd

7 Cadbury India

8 Britannia Industries Ltd.

9 Procter & Gamble Hygiene and Health Care

10 Marico Industries Ltd.

11 Colgate-Palmolive (India) Ltd.

12 Gillette India Ltd.

15 Johnson & Johnson

17 Nestle

18 Nirma Ltd

Some of the best known examples of Fast Moving Consumer Goods companies are

Reckitt Benckiser(manufacturers of dettol, vanish, strepsils etc.)

Sara Lee(goodknight, hit, kiwi shoe polish, brylcreem)

Unilever(unsilk, dove, lux etc.)

Procter & Gamble

HINDUSTAN LEVER LIMITED (HUL)

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company;

Hindustan Unilever Limited has traditionally been a company, which incorporates latest

technology in all its operations. The Hindustan Unilever Research Centre (HURC) was set up in

1958, and now has facilities in Mumbai and Bangalore. HURC and the Global Technology

Centers in India have over 200 highly qualified scientists and technologists, many with post-

doctoral experience acquired in the US and Europe.

Hindustan Unilever Limited is India’s largest Fast Moving Consumer Goods Company, touching

the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care

Products and Foods & Beverages. Hindustan Unilever Limited is also one of the country’s

largest exporters; it has been recognized as a Golden Super Star Trading House by the

Government of India. The mission that inspires Hindustan Unilever Limited’s over 15,000

employees, including over 1,300 managers, is to “add vitality to life.” HUL meets everyday

needs for nutrition, hygiene, and personal care with brands that help people feel good, look good

and get more out of life. The products of Hindustan Unilever Limited are manufactured over 40

factories across India. The operations involve over 2,000 suppliers and associates. Hindustan

Unilever Limited’s distribution network, comprising about 4,000 redistribution stockiest,

covering 6.3 million retail outlets reaching the entire urban population, and about 250 million

rural consumers. Some of the products manufactured by Hindustan Unilever Limited are:

Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Sunsilk, Clinic Plus, Pepsodent,

Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall’s. These products are

popular in Indian as well as foreign markets. For achieving all the goals set, the company needs

its employees and to get their support the company needs to motivate them. BRANDING

STRATEGY Their main challenge was to reverse the down trading in the categories and re-

establish the relevance of their brands in the mind of the consumer. In 2000, they had 110

brands, many undifferentiated and lacking scale. They chose to focus on 35 power brands

covering all consumer appeal and price segments. They are already seeing the benefits. Six

brands — Brooke Bond, Lifebuoy, Lux, Fair & Lovely, Rin and Wheel — have emerged as

mega brands in the last five years, each with sales of more than Rs.500 crores.

Meeting Everyday Needs of People Everywhere

Hindustan Lever Limited (HUL) is India's largest fast moving consumer goods company, with

leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread

across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow

the company with a scale of combined volumes of about 4 million tones and sales of Rs.10,000

crores.

The leading business magazine, Forbes Global, has rated Hindustan Lever as the best consumer

household products company. Far Eastern Economic Review has rated HUL as India’s most

respected company.

The vision that inspires HUL's 32,400 employees (40,000 including Group Companies),

including about 1,425 managers, is to “meet everyday needs of people everywhere - to anticipate

the aspirations of our consumers and customers and to respond creatively and competitively with

branded products and services which raise the quality of life.” This objective is achieved through

the brands that the company markets.

It is an ethos HUL shares with its parent company, Unilever, which holds 51.55% of the equity.

A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands through

300 subsidiary companies in about 100 countries worldwide with products on sale in a further

50.

Business nature

HUL is India's largest marketer of Soaps, Detergents and Home Care products. It has the

country’s largest Personal Products business, leading in Shampoos, Skin Care Products, Color

Cosmetics, and Deodorants. HUL is also the market leader in Tea, Processed Coffee, branded

Wheat Flour, Tomato Products, Ice cream, Soups, Jams and Squashes.

HUL is also one of the country's biggest exporters and has been recognized as a Golden Super

Star Trading House by the Government of India; it is a net foreign exchange earner. HUL is

India's largest exporter of branded fast moving consumer goods.

Products, Basmati Rice, Castor Oil and its Derivatives. It is India's largest exporter of Marine

Products, and one of the largest global players in castor.

Market leading brands

HUL’s brands have become household names. The company’s strategy is to concentrate its

resources on 30 national power brands, and 10 other brands which are strong in certain regions.

The top five brands together account for sales of over Rs.3000 crores. Each of these mega brand

has a potential scale of Rs.1000 crores in the foreseeable future. Some of the big brands in Soaps

and Detergents are Lifebuoy, Lux, Liril, Hamam, Breeze, Dove, (all soaps), Surf Excel, Surf,

Rin, Wheel (the number one detergent brand in India, and HUL's

Largest), 501, Sunlight (all detergents). HUL also markets the Vim and Domex range of Home

Care Products.

In the Personal Products business, HUL's Hair Care franchises are Clinic, Sunsilk and Lux

shampoos; the company markets Nihar oil. In Oral Care, the portfolio comprises Close-up and

Pepsodent toothpastes and toothbrushes. In Skin Care, HUL markets Fair & Lovely Skin Cream

and Lotion, the largest selling Skin Care Product in India; a brand developed in India, it is now

exported to over 30 countries. It has been extended as an Ayurvedic cream, an under-eye cream,

a soap and a talc, in line with the strategy to take brands across relevant categories. The other

major Skin Care franchises are Pond’s, Vaseline, Lakme and Pears. In Color Cosmetics, HUL

markets the Lakme and Elle-18 ranges. In Deodorants, the key brands are Rexona, Axe, Denim

and Pond's, while the Talc brands are Pond's, Liril, Fair & Lovely, Vaseline and Lifebuoy. Axe

and Denim are HUL’s franchises for Men’s toiletries. HUL has recently launched Lever Ayush

Ayurvedic Health & Personal Care Products.

HUL has started franchised Lakme Beauty Salons, offering standardized services, in line with

the strategy to add a service dimension to relevant brands.

HUL is one of the world’s largest packet Tea marketer. Its Tea brands – Taj Mahal, Red Label,

Taaza, A1, 3Roses - are among the top brands in the country; it also markets Lipton Ice Tea.

HUL and Pepsi have formed an alliance to distribute a full range of tea and coffee and soft

beverages through vending machines; HUL already has a base of around 15000 such machines.

Hindustan Lever Ltd (HUL) currently on a price discount includes 150 gm Lifebuoy Gold (Rs 3

OFF) TRYING to match prices with the smaller players, large FMCG companies have been on a

price-cutting spree. Of late, Hindustan Lever has announced ‘new’ prices for their various brands

to beat sluggish sales, combined with the introduction of lower-sized packs to get volumes. HUL

is also expected to follow suit with its Surf sachets with the obvious purpose of gaining volumes

at the lower end of the market.

HUL managers describe the exercise as that of dropping price barriers to induce growth for their

brands rather than trying to beat the smaller players with their pricing. More than benchmarking

competition, dropping prices is all about triggering growth and this has always been an integral

part of their strategy. Straddling almost every price segment with its SKUs, HUL has also been

trying to upgrade its consumers, even at the cost of cannibalizing its own brands. Besides,

freebies and promotions have finally been replaced by direct price reductions to lure consumers.

Observes Sujoy Mishra, an analyst At Kotak Securities, “Promotions have shifted to the trade

while freebies have been replaced by price cuts. “ Considering almost every FMCG brand was

doling out a freebie, it was time for FMCG players to differentiate themselves. Observes A.

Sundarajan, Managing Director of market research firm, Market Search, “The round of freebies

has already been played out by the FMCG companies. They are now coming back to their core

brands at a lower price.” HUL have deliberately introduced small pack sizes.

BRIEF HISTORY

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars,

embossed with the words "Made in England by Lever Brothers". With it, began an era of

marketing branded Fast Moving Consumer Goods (FMCG). In 1931, Unilever set up its first

Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers

India Limited (1933) and United Traders Limited (1935). These three companies merged to

Form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the

first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company.

The rest of the shareholding is distributed among about 380,000 individual shareholders and

financial institutions. Pond's (India) Limited had been present in India since 1947. It joined the

Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. The

liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and

the Group's growth curve. Removal of the regulatory framework allowed the company to explore

every single product and opportunity segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most

visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills

Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet

another Tata company, In January 2000, in a historic step, the government decided to award 74

per cent equity in Modern Foods to HUL, thereby beginning the divestment of government

equity in public sector undertakings (PSU) to private sector partners. HUL's entry

into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the

government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and

Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added

Marine Products exports.

PRESENT STATURE

Hindustan Lever Limited (HUL) is India's largest Fast Moving Consumer Goods company,

touching the lives of two out of three Indians with over 20 distinct categories in Home &

Personal Care Products and Foods & Beverages. They endow the company with a scale of

combined volumes of about 4 million tones and sales of Rs.10,000 crores. HUL is also one of the

country's largest exporters; it has been recognized as a Golden Super Star Trading House by the

Government of India. HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &

Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-

Annapurna, Kwality Wall's – are household names across the country and span many categories -

soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary

products. They are manufactured in close to 80 factories. The operations involve over 2,000

suppliers and associates. HUL's distribution network, comprising about 7,000 redistribution

stockiest, directly

covers the entire urban population, and about 250 million rural consumers. HUL believes that an

organization’s worth is also in the service it renders to the community. HUL is focusing on

health & hygiene education, women empowerment, and water management. It is also involved in

education and rehabilitation of special or underprivileged children, care for the destitute and

HIV-positive, and rural development. HUL has also responded in case of national calamities /

adversities and contributes through various welfare measures, most recent being the village built

by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused

devastation in South India.

HINDUSTAN LEVER claims to practice value-based pricing in which the customers’

perception of the product’s price provides a starting point for developing the marketing mix of

the product. The research department determines this price usually by using focus groups. The

price of Re 1 and 2 for Sunsilk shampoo sachets shows how the price also reflects a concern to

make the purchase more convenient, since the rupee is denoted in this value.

Sunsilk is also available in Rs 45 and Rs 169 price bottles to cater to the demands

keeping in mind the wants of this particular customer segment.

The primary importance of this value-based pricing is that the product demand will be

much higher if its price is in line with the customer’s perception of its value. One crucial concern

for value-based pricing is strict management of cost in order to be able to make a profit at the

value-based price. After the initial price is determined, HINDUSTAN UNILEVER then uses

target costing in order to achieve the required profits.

PROMOTION

Build top of the line consumers’ awareness.

Creating a personality of the brand.

Besides having these general objectives, the advertising objectives are set avoiding to the

advertising strategy for each product, e.g. Sunsilk advertising objectives since it was being re-

launched were:

To increase the usage.

Conditioning benefits.

Makes the hair appear clean and shiny.

Imparts a feeling of freshness-due to fragrance.

Easy to manage, silky, soft hair.

Unique shampoo for every hair type.

Effectively communicate brand promise.

Promotional strategy

Innovative campaigns such as ‘Hairapy’ and ‘Life Can’t Wait’ were launched to attract

women to the brand

Sponsored short films that were broadcast during popular television shows.

Media platforms used

Print media

internet rural campaign

environment concern ads

Music videos

Free sample distribution

Demo campaigning

Promotion of the products in the sunsilk range through movies such as “Fashion”

Sunsilk has come up with a new promotional campaign GOOD HAIR DAYS in six major

cities in collaboration with famous hair stylists of the country.

Sponsorships

Enhancement of product mix

New product formulations according to changing consumer preferences

Advertising

HINDUSTAN UNILEVER believes that messages about product delivered by credible

sources can be very persuasive. Hence Jawed Habib who is an hair care expert endorses Sunsilk

and more value is added to the brand. Consumers relate to products itself, they can relate to a

human being who consumers believe is an expert so Jawed Habib is an expert so is Sunsilk.

Jawed Habib a recognized and highly qualified hair stylist is used by Sunsilk in its ads because

they want to bring out an expert’s image.

MAIN PRODUCT LINE

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company,

touching the lives of two out of three Indians with over 20 distinct categories in home & personal

care products and food & beverages. They endow the company with a scale of combined

volumes of about 4 million tones and sales of over Rs. 13,000 crores.

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers

across India.

The various segments where HUL has strong presence are as follows:

Food brands

Home care brands

Personal care brands

Water

Nutrition

Health, hygiene & beauty

A brief study of the various product lines is done in the following section.

Food brands:

HUL is one of India’s leading food companies and their products are the leaders in their

respective fields. Some of the food brands are as follows:

Brooke Bond 3 Roses Playful banter, a little mischief, serious conversation…

there’s no time for young couples like the time spent sharing a cup of 3 Roses.’

Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is

aimed at helping her provide wholesome tasty nutrition to her family. 

Red Label India’s favorite cup of tea, the great taste of Red Label brings people

closer together and strengthens relationships.

Brooke Bond Taaza Brooke Bond Taaza lifts me and unshackles my mind, allowing

me to see and realize possibilities.

Taj Mahal Brooke Bond Taj Mahal is an exclusive selection of teas for the

discerning consumer.

Bru Ek cup Bru aur mood ban jae…

Kissan With Kissan, good food is loved not shoved!

Knorr helps families make meal times special, nutritious, tasty and healthy.

Kwality Wall’s A good honest scoop of daily pleasure.

Lipton has a range of vitality teas that truly encompass the goodness of tea.

Home care brands:

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers

across India.

Active Wheel aims at giving freedom from painful & tiring laundry

Cif targets being the best cleaner to let the utensils shine.

Comfort Is the world’s largest fabric conditioner brand.

Domex Introduced as a strong toilet cleaner that eradicates all the germs.

Rin aims at providing the best whiteness’ which can be demonstrable.

Sunlight is a color care brand

Surf Excel The washing powder brand.

Vim Created in 1885, the Vim brand is placed as a domestic appliances cleaning

brand.

Personal care brands:

HUL’s personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are

recognized and known by consumers across India. They are aimed at helping to look good.

Aviance provides women with customized beauty solutions.

Axe is a leading deodorant brand.

LEVER Ayush Therapy provides customized ayurvedic solutions.

Breeze beauty soap targeted towards the lower end of the market.

Clear New Clear is a hair washing shampoo.

Clinic Plus is India’s largest selling shampoo.

Closeup The dental care product.

Dove is premium beauty soap.

Fair & Lovely Built more than 30 years ago, World’s No.1 Fairness cream.

Hamam Holistic skin care experiences perfected over the ages to deliver

healthy, beautiful skin.

Lakme is an ally to the Indian Woman and inspires her to express her unique

beauty and sensuality. Thus, enabling to realize the potency of beauty.

Lifebuoy is available in multiple variants in soaps and specialist formats such

as liquid hand wash, catering to the entire family.

Liril Awaken, and enliven your senses with a Liril bath.

Lux believes in passion for beauty. It continues to be a favorite with generations

of users for a sensuous experience of luxury.

Pears the purest and most gentle way to skincare!

Pepsodent India is committed to improve the overall Oral health of Indians.

Pond’s Get the expert to look after your skin

Rexona gives you 24 hr protection from sweat and body odor and therefore the

confidence to handle whatever the day has in store.

Sunsilk encourages young women in India to live for today. Sunsilk helps you

transform the beauty of your hair instantly because LIFE CAN'T WAIT!!

Vaseline Your skin is amazing. It deserves to be treated as such.

More HUL Products

You may have seen a variety of water purifier advertisements and so may be confused on which

one to buy. This one is about Hindustan Unilever PureIt and is not a recommendation to buy

but just a review on how it works and performs over others.

The main advantage of Pure IT water purifier is that you don’t have to worry about either

continuous water supply or electricity supply. Having said that, it may also be a disadvantage

that you need to manually put in water every time the water level depletes to near zero. The

bottom transparent bottom chamber can store up to a maximum of 9 liters of water and the top

chamber another 9 liters. Hence if your family is a big one say consisting of at least 8-9

members, then you may have to fill the water chamber multiple times a day.

However, like most of the families if only 4 or 5 people exist, then you may have to add water

every couple of  days.

The way this works is simple. We add water to the top chamber which is unfortunately not

transparent and so  have to be very careful when it is just about to fill completely. The moment

you pour in the water, it goes  through a ‘Microfiber Mesh‘ that removes any visible dirt. The

next stage is to go

through a Compact carbon Trap that further removes any dirt, if present besides removing any

parasites or pesticides.

The water will then be purified using the proprietary Germ kill battery that kills harmful bacteria

and Viruses.

Then the water reaches the lower part of the Unit where it goes through a polisher that adds taste

to the water and makes it completely odorless. Then the water rises above the chamber and falls

into the visible lower chamber from which a tap arises.

The battery has a life indicator and normally lasts for nearly a year (for single family consisting

of 4 members). The life is indicated by a bar, which when turns red should be immediately being

replaced. The battery costs only Rs.350 and the entire unit cost just Rs.2000.

Hindustan Unilever Ltd (HUL) is extending its OOH (Out of

Home) business by setting up 'experiential kiosks' under the Lipton brand. Graduating from its

existing vending machines, almost 50 such kiosks are planned this year which it would set up

at corporate parks, railway stations and airports. According to HUL officials, "Unlike the

vending machines where you just need to push a button, the new experiential kiosks would serve

mock tails and heath oriented beverages made from HUL's beverage brands. Apart from

beverages, the kiosks are also expected to serve ice-creams. Through the kiosks we want to give

experiential bursts for our beverage brands."

The kiosks would be run on a franchise model. “We would have a business partner on board and

the kiosks will be run on 10 by 10 sq ft area,” added the official. Having done a pilot  test in

Delhi recently, HUL is now poised to roll out these kiosks nationally along the lines of its

existing ice-cream parlor brand - Swirl’s which is also run through franchisees. In fact, ice-

creams have become a profitable business for HUL within its foods portfolio which includes

beverages and processed foods.

Meanwhile within the foods business, HUL intends staying away from the ready-to-eat

(RTE) business. “We have recently introduced the ready-to-cook range under Knorr but we

certainly would not be entering the RTE category in foods. In future, there would be more

products under the Knorr franchise but these would be adapted from our international portfolio,”

HUL officials stated.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk,

Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's –

are household names across the country and span many categories - soaps, detergents, personal

products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured

over 40 factories across India. The operations involve over 2,000 suppliers and associates. HUL's

distribution

PRODUCT PLANNING STRATEGIES

1.

Market research is crucial for efficient product planning.

Every company needs to think about product planning strategies. Companies need to be

forward-thinking, working to design future products by estimating the needs of the market.

Depending on the product cycle and industry, this process requires a month's preparation or

years. For example, many large ship manufacturers plan their products years in advance

because it will take years for those products to be built and completed.

Market Research

2. Market research is one of the most important parts of product planning strategy. Asking

current customers how existing products can be improved and what products they would

like to see being offered gives companies an insight into the mind of the consumer. The

majority of large corporations devote significant resources to market research, which

includes focus groups, beta testers (new product testers) and market analysis.

Internal Research and Development

3. Google famously uses the 80/20 rule. Employees must spend 80% of their time working

on mandatory projects and 20% of their time working on whatever they like. This free,

creative time has resulted in some of Google's most popular products, including Gmail.

Internal research and development is often where those who know the company's products

best are allowed to suggest and develop improvements and even whole new products. The

engineers and researchers are intimately familiar with the workings of product technology,

and they are able to see more keenly where advances can be made.

The Competition

4. Watch the competition. Monitor what competitors are doing, what products they are

releasing, what their press releases say about upcoming products. The competition provides

valuable clues as to the direction the industry is headed. If you overlook what the

competition is doing, you may be left in the dust. In addition, you may be able to improve

on the new products your competitor is working on and offer cheaper or better alternatives.

Current Advances

5. Companies need to be aware of current advances in technology. As the technology in an

industry advances, so too do the products that industry produces. You need to be aware of

the latest manufacturing innovations and conscious of not only your industry but the

industries of all related technologies. For example, if an electronics manufacturer uses a

certain processor, that processor may not be a core component in their technology but an

advance in processor speeds may increase the functioning of their product. This is why you

need to pay attention to the industries of your parts suppliers.

A business looking to introduce some product into the stream of commerce must plan and design

a product strategy carefully. Two major product strategies include price-based product strategy

and product differentiation. When developing a strategy, strive to answer the following

questions: who the product is aimed at; what benefit the product brings; what your position is in

the marketplace; and what advantage the strategy will have over those of your competitors.

PRICE-BASED PRODUCT STRATEGY

1. When using a price-based product strategy, the product is planned according to such

things as cost-plus pricing (where you set the price of the product at the production cost

plus a specific profit margin); value-based pricing (where the price is derived according to

the product's value in relation to competitor's products); and target-return pricing (where

you set a price in order to receive a certain profit return). Essentially, your strategic angle in

a price-based strategy is to set the price in such a way that your product has a competitive

advantage over other similar products.

2. When implementing a price-based product strategy, consider another facet: price

discounts. After choosing a price-based method, and after formulating your strategy

according to the factors in the overview, you will arrive at a list price (the price that you

want to sell the product). Discounting the price lowers the list price, but makes purchasing

the product more lucrative. Discount examples include quantity discounts (to be offered for

customers who purchase a specific bulk quantity of your product) or seasonal discounts (to

be offered during the year).

Product Differentiation

3. Use a product-differentiation strategy when your firm and competing firms offer a

product that fulfills the same need (such as coffee). In a product-differentiation strategy,

your goal is to put distance (in a good way) between your product and your competitor's

product. Essentially, your competitor sells Coffee Blend A, but you Sell Coffee Blend B; in

your strategy, you need to produce Coffee Blend B so that coffee lovers find yours to be

superior to your competitor's.

4. There two forms of product differentiation: vertical differentiation and horizontal

differentiation. To implement a vertical product-differentiation strategy, your goal is to

improve features of your product so that the customers perceive a difference in quality due

to your improvements. Horizontal differentiation focuses on your customers' preferences

and should be used when the features of your product cannot differ substantially from the

features of your competitors.

According to economicswebinstitute.com, one common example of horizontal

differentiation is with ice cream: different flavors are not "better" than others. If you cannot

make your product "better," focus instead on marketing to customer taste and preference

(such as conducting research to discover more people like one flavor over another\

PRODUCT PLANNING OF HUL

Hindustan Unilever Ltd (HUL) is reacting faster to competition and market trends to avoid being

caught unawares by events such as the volatility in raw material prices in 2008, even as it plans

aggressive expansion.

 

India’s largest consumer goods maker by revenue has adopted a strategy to defend and raise

market share by increasing production capacities, reducing inventory levels and improving the

percentage of orders satisfied from stock at hand, resulting in better service and volume growth.

 

“We have taken a number of steps organizationally,” said Pradeep Banerjee, supply chain

director, HUL, and one of the executives at the centre of the change process.

 

Given the increased number of new launches and promotions, business teams across functions

from planning to production and sales are involved in the introductory exercise, Banerjee said.

Such moves reduce the amount of old inventory lying with retailers and get new innovations to

market faster.

 

For instance, its Silvassa detergents factory turned a single assembly line into a twin track last

year, doubling output, after some modification of the machines. The process has been replicated

on two more lines in the unit and follows the principles of kaizen, the Japanese management

philosophy of constant improvement based on a common-sense approach and the use of cost-

effective techniques.

 

The effects have been dramatic: HUL has seen overall machine production levels improve from

75% in 2009 to 92% in 2010; a reduction in defects per 1,000 pieces by 50% and a drop in

wrapper wastage by 70%.

 

The twin-line innovation has helped meet demand “without the need for investing in newer

machines”, said a company spokesperson. The installation of new capacities follows an increase

in sales in the last six-eight months.

 

works “on volumes and their competition is regional and HUL national”, said Shirish Pardeshi,

industry specialist, institutional equities, Anand Rathi Financial Services Ltd. “Smaller batch

sizes and flexibility in production help it to respond faster to volatility and competition.”

 

The changes mark a new aggressive phase at the company, which has been in India for over 75

years.

 

While sales volume rose in the March quarter, according to lost market share on a year-on-year

basis market researcher The Nielsen Co., HUL in most categories—except shampoos—in the

first two months of the fiscal. Banerjee, though, is planning ahead for the next 18-24 months,

adding capacity.

 

“Will we sell 1 million tones of laundry? Yes, we will. Will Banerjee said. “These are all we

sell 2,000 tones of tea? Of course, we will,” indicative numbers, but they indicate a change from

the past and indicate substantially more than what we have got at present.”

 

HUL sells 2 million tones of products a year through a primary distribution network of 2,600

distributors. It has a portfolio of 1,500 stock-keeping units, or different-sized packs in 61

formats. The maker of Surf and Rin detergents and Sunsilk services one million retailers directly

and reaches six million indirectly.

 

The 2008 collapse in the price of crude oil, a key input, to being stuck with high levels of old

inventory, $40 from $140 a barrel led to HUL while rivals were quick to take advantage and

launch cheaper products. The company lost some 5 percentage points of market share as low-

end, cheaper detergents were launched on the back of the commodities market volatility that

year.

 

Volume growth fell 4% in the quarter ended March 2009, having risen 10% in the year-earlier

quarter. Volumes have since recovered to 11% growth in the quarter ended March 2010 because

of price cuts in key categories such as laundry, soaps and shampoos, besides a 39% increase in

spending on advertising in the quarter.

 

HUL has also improved its customer order fill rate—a measure of an inventory’s ability to meet

demand—and speed to market.

 

“We have reduced the finished goods and raw materials in the chain dramatically by 30-40%,

which means lesser working capital, faster response and better service,” said Banerjee. This

effectively means that the number of days that stock is held has dropped to 60 days from close to

90 days.

 

The delivery of orders “has improved from 75-76% to 90% over the last 12-18 months,”

Banerjee said.

 

Additionally, if it earlier took the company 70 days to land a product in the market, it can now do

so in 35 days. “In the last five-six months, we have reduced the time by 50% in half of our

networks, and we are looking at further halving this,” Banerjee said.

 

Over the last year, HUL has relaunched 80% of its portfolio, making sure that prices reflect

market trends.

 

has also sought to improve its fill rate, a measure of HUL stock availability with distributors.

 

“At any given time, the stock we have is not older than one-two months and, with full range

availability, it improves sales pick-up,” said stockiest in Mumbai. Suleiman Hussain,

proprietor, Sunshine Agency, an HUL

 

Traditional retailers account for 90% of overall business, while modern formats account for the

rest. At the end of 2009, the company started expanding its distribution reach. “We expect to

triple rural coverage and improve urban coverage by 15%,” it said in its annual general report

released last week.

 

Brokerage Sharekhan Ltd said in its quarterly preview report that it expects the firm to post

growth of 9.2% in revenue and 5.6% in net profit in the April-June quarter. Higher raw material

costs and advertisement spending coupled with lower sales realization in the soap and detergent

categories will affect overall profitability, it said.

 

Food inflation and higher input costs will hit growth and profit at consumer goods companies in

the three months ended June, Mint reported on Monday, based on a survey of four brokerages.

Earnings will, however, be shored up by rural markets, thanks to welfare schemes and higher

incomes from rising commodity prices.

PRODUCT DISTRIBUTION CHANNEL

For rural India, HUL has established a single distribution channel by consolidating categories. In

a significant move, with long-term benefits, HUL has mounted an initiative, Project Streamline,

to further increase its rural reach with the help of rural sub-stockiest. It has already appointed

6000 such sub-stockiest. As a result, the distribution network directly covers about 50,000

villages, reaching about 250 million consumers corporate relationships which in turn prove

beneficial for the functioning of the company.

“The most important thing in life is not to capitalize on your successes - any fool can do that.

The really important thing is to profit from your mistakes.”

BRANDING STRATEGIES ADOPTED BY HUL

HUL has a large brand portfolio consisting of nearly 110 bands. In every product line, it has built

a number of brands over a period of time. Quite a few brands have come to its fold from the

parent company. It has also acquired several ongoing brands from the market. HUL also

vigorously pursues brand extension strategy. And concurrently, HUL undertakes line pruning

and brand restructuring and consolidation, based on marketing compulsions. HUL is also playing

the rejuvenation and re-launch game. With great benefit the corporate-level endeavors at

business expansion and diversification are also throwing new challenges on the brand strategy

front. HUL lends itself for a proper understanding of the complexity of the brand management

task. We shall examine how HUL handles the complex demands in brand management.

Such an array of brands is the outcome of a conscious corporate strategy by HUL. As a

corporate, HUL wants to be a leader in every one of its businesses and the strategy is to fight on

the strength of the competitive advantage arising from the possession of strong brands. It is this

strategy that is getting reflected in the development of a multitude of strong brands. If we take

the business of bathing soaps, as an example, HUL has the objective of being a national player

(not a niche or a regional marketer) and the leader therein. HUL also wants about 30 per cent of

the corporate income to come from this line.

So, HUL opted for the strategy of developing quite a few strong brands in this line, and among

them they cover different market segments and price points. Dove, Lux, Liril, Rexona, Pears and

Lifebuoy are the outcome of such a well planned brand strategy implemented over time.

Lifebuoy is 100 years old and Liril 15 years old. In fact, HUL has about 10 brands of toilet soaps

each having good volume of sale to its credit. The point is that decisions on brand portfolio are a

fundamental expression of the company’s objectives and strategy governing a given business.

HUL Locates Positioning Opportunities:

HUL methodically goes about the task of developing a brand portfolio across a product category.

It first identifies the various positioning opportunities across benefits, target groups and price

points. Existing brads are mapped across these positioning opportunities, and gaps for possible

new offers are explored.

The company then estimates the likely volumes for each of the possible opportunity and the

financial viability and sustainability of the propositions in the long term. If some of these gaps

look promising, HUL goes ahead with the plans.

It examines the existing set of brands with the company, the product technologies available, the

benefits that can be provided and other considerations that have a bearing on the company’s long

term interests in the business. Finally, if the company decides to go in for the new offer, a

decision has to be taken as to whether new brands should be created or extensions if existing

brands should be preferred or ongoing brands from the market acquired.

HUL hires brands to capture new opportunities:

Towards the close of the 1990s, HUL found that the germicide segment of the soap market was

growing fast, with RCI’s Dettol antiseptic soap leading it. HUL did not have suitable offer in its

stable to capture a share of this segment. Lifebuoy was not strictly meeting the particular benefit.

HUL knew that launching and developing a new brand would take a lot of time and resources,

and the company would miss the market if it chose this route. HUL did not have the product

formula either to enter this segment. It was in this background that HUL decided to hire the

Savlon brand from J&J. Savlon was a successful antiseptic lotion, a competitor to Dettol lotion.

Just as the Dettol soap owed its origin to the success of the Dettol lotion, HUL assessed that a

Savlon antiseptic soap could be successfully extended from the Savlon lotion.

It entered into an agreement with J&J for the use of Savlon brand name and the product formula,

and launched the Savlon antiseptic soap. HUL very deftly managed successfully new brand

launch and merged as a challenger to Dettol soap. J&J secures a good royalty from HUL for

lending the brand. It is a potentially win-win arrangement for both companies.

FUTURE PROSPECTS

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the

economy. A well-established distribution network, intense competition between the organized

and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over

60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been

estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores

in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and

confectionery categories are estimated to be the fastest growing segments, says an HSBC report.

Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine

recovery since then.

For example, Hindustan Levers Limited (HUL) has shown a healthy growth in the last quarter.

An estimated double-digit growth over the next few years shows that the good times are likely to

continue.

Growth Prospects

With the presence of 12.2% of the world population in the villages of India, the Indian rural

FMCG market is something no one can overlook. Increased focus on farm sector will boost rural

incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure

facilities will improve their supply chain. FMCG sector is also likely to benefit from growing

demand in the market. Because of the low per capita consumption for almost all the products in t

the country, FMCG companies have immense possibilities for growth. And if the companies are

able to change the mindset of the consumers, i.e. if they are able to take the consumers to

branded products and offer new generation products, they would be able to generate higher

growth in the near future. It is expected that the rural income will rise in 2007, boosting

purchasing power in the countryside. However, the demand in urban areas would be the key

growth driver over the long term. Also, increase in the urban population, along with increase in

income levels and the availability of new categories, would help the urban areas maintain their

position in terms of consumption. At present, urban India accounts for 66% of total FMCG

consumption, with rural India accounting for the remaining 34%. However, rural India accounts

for more than 40% consumption in major FMCG categories such as personal care, fabric care,

and hot beverages. In urban areas, home and personal care category, including skin care,

household care and feminine hygiene, will keep growing at relatively attractive rates. Within the

foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth

categories in both rural and urban areas.

APPROACH TO STUDY

Objectives of the Study

The research aims at identifying salient features of the Product Strategies adopted by FMCG

companies with reference to HUL in respect of some of their offerings. The following are some

of the specific objectives of the study.

1. To assess the product strategy used in consumer market.

2. To evaluate the Product mix strategy of HUL in Indian Market.

3. To determine the customer perception and opinion on product lines offered by HUL

4. To assess the existing and desired products of HUL.

Scope of the Study

The scope of the study deals with the area that has been considered in the research. The area

considered in the research is product mix strategies of Hindustan Uni-Lever in Indian Market.

Consumer opinion on the product mix strategy of the HUL is collected with the aid of designed

questionnaire. The sample respondents are selected from the various segments in Bangalore and

Mysore. The collected data is analyzed to meet the research objectives.

RESEARCH METHODOLOGY

Research methodology has many dimension, it includes not only the research method but also

consists the logic behind the methods used in the context of the study and explains why only a

particular method of technique had been used so that search lend themselves to proper

evaluation. At the outset may be noted that there are several ways of studying and tacking a

problem. The formidable problem that follows the task of defining the research problem is the

preparation of the design of research project popularly known as research design.

More explicitly the designing decision happened to be in respect of following:

What is study about?

Why is study being made?

Where will the study be carried out?

What type of data is required?

What will be the sample design?

What period of time will the study include?

How will the data be analyzed?

In what style will the report will prepared?

The purpose of this section is to describe the research procedure. This gives the researcher

sufficient support to give his argument for opting certain alternatives and to justify his position.

Research methodology is a way to systematically solve the research problem. It include all those

steps that are generally adopted to solve the research problem.

IT GENERALLY INVOLVES

DATA COLLECTION:

The task of data collection is being after a research problem has been defined and research

designed/plan chalked out. Data collection is to gather the data from the population. The data can

be collected of two types:

Primary Data

Secondary data

PRIMARY DATA are those which are collected afresh and for the first time, and thus happened

to be original in character. Methods of primary collection are as follows:

Questionnaire

SECONDARY DATA is being search sites like magazines, newspapers, journals, websites and

the data has been collected through other approaches.

SAMPLE SIZE is 100

METHOD USED IN STUDY

In this study both primary and secondary method of Data collection is used in primary the

observation method and interview method was used Research taken the interview of the retailer

and consumers and find what is the advertising effect on different brand of “FMCG. This is

finding out that what type of advertisement, Marketing Strategy attract the consumer. The study

is fresh and for the first time and happen to the original in character. Not used any previous

reports of company in Primary Data.

Secondary Source for collecting data used in this research are internet and from Magazines the

information collected from the retailers and the consumers.

SOURCE OF DATA

The data source are secondary as well as primary. In secondary, the data consists of information

that already some where that have been collected for another purpose.

In primary source the data consist of original information gathered for the specific purpose.

The cluster sampling technique is decided to collect the data from consultants in Yamuna Nagar

city.

DATA BASED REPORT GATHERED

Data Analysis and Interpretation.

Q1-You are dealing with the FMCG Products from?

No of years No of respondents %age of respondents

5 years 65 65%

5-10 years 25 25%

More than 10 years 10 10%

Interpretation: - Above Table shows that 60% of the dealers selling from 5

years and rest of them more than 5 years that means they are satisfied with

company. So they are doing regularly.

Q2-Which products of FMCG are most preferable by customers?

Product No of respondents %age of

respondents

HUL 32 32%

DABUR 16 16%

NESTLE 20 20%

BRITANIA 8 8%

NIRMA 16 16%

COCA COLA 8 8%

Interpretation:-This chart is showing that %age of sales of HUL is 32% which is

more than that of others. It means the selling of HUL is more than that of other

FMCG products

Q3. In which season the selling of products is more?

Months No of respondents %age of

respondents

Jan-March 15 15%

Apr-June 45 45%

July-Sep 5 5%

Oct-Dec 35 35%

%age of selling of products

32%

16%20%

8%

16%8%

HUL

DABUR

NESTLE.BRITANIA.

NIRMA

COCA COLA

Interpretation:-This chart is showing that in the month of April to June the sales

of FMCG products is very high than that of other which is 4%.it mean it may

after that in the month of October to December the sales of FMCG product is

also more.

Q4.Which factors influence the consumers to purchase the HUL products?

Factors No of respondent %age of

respondents

Quality 18 18%

Price 14 14%

Sales promotion activities 9 9%

Brand image 54 54%

Services 5 5%

Interpretation:-Brand image is influenced most of the people to purchase the

consumer durable.

Q5. Media plays an important role of making the awareness of the product.

What do you think?

Percentage No of respondents

20%-30% 4

30%-50% 16

50%-70% 36

70%-90% 24

%age of factors influence consumer to purchase FMCG product

18%

14%

9%54%

5%

quality

price

sales promotionactivities

brand image

services

5%20%

45%

30% 20%-30%

30%-50%

50%-70%

70%-90%

Interpretation:-60%to 70% of the people get aware from media.

Q6. What are the factors in media which makes the consumer more attentive

towards the new, improved and innovative products and technology?

Factors of media No of respondents %age of respondents

Television 59 59%

News paper 17 17%

Internet 14 14%

Magazine 3 3%

Hoardings 7 7%

% of respondents

59%17%

14%3% 7% television

news paper

intrnet

magazines

hoardings

Interpretation: - the factor in media which makes the consumer more attentive

towards the new, improved and innovative products and technology is Television

which plays important role in advertisement in comparison to others.

SWOT ANALYSIS OF HUL

Strengths

1. Strong and well differentiated brands with leading share positions

2. Distinctly placed products providing reach to every segment of society.

3. Consumer understanding and systems for building consumer insight

4. Integrated supply chain and well spread manufacturing units

5. Distribution structure with wide reach, high quality coverage – The launch of project “Shakti”

has helped HUL to create brand awareness and extensive reach in rural India.

6. Access to Unilever global technology, capability and sharing of best practices from other

Unilever companies.

7. Well placed to take advantage of growth in rural India and lower strata of the society through

“Shakti”.

8. It could look at introducing products from its parent company like margarine in order to cater

to changing consumer tastes and opportunities in food sector.

9. It can be a leader in exports by positioning itself as a sourcing hub for Unilever companies in

various countries.

Weaknesses

1. Price positioning in some categories allows for low price competition like Amul captured

Quality’s market.

2. Limited success in changing eating habits of people.

3. Competitors focusing on a particular product and eating up HUL’s share, like Nirma focusing

on soaps and detergents.

Opportunities

1. Growing consumer base due to increasing income levels and new consumers from lower strata

of the society

2. Untapped market in branded Ayurvedic medicines and other such consumer products.

3. Opportunity in Food sector: changing consumer tastes

4. Expansion of horizons towards more and more countries

Threats

1. Unfavorable raw material prices due to inflation, reducing profitability.

2. Heavy onslaught of competition in the core categories from emerging players like ITC will

result in higher advertising expenditure

3. Spurious/counterfeit products in rural areas and small towns.

4. Reduction in real income of consumers due to high inflation.

FINDINGS AND BIBLIOGRAPHY

Findings

The dealers selling from 5 years and rest of them more than 5 years that

means they are satisfied with company. So they are doing regularly.

The %age of sales of HUL is 32% which is more than that of others. It

means the selling of HUL is more than that of other FMCG products

In the month of April to June the sales of HUL products is very high than

that of other which is 4%.it mean it may after that in the month of October to

December the sales of HUL product is also more.

Brand image is influenced most of the people to purchase the consumer

durable.

60%to 70% of the people get aware from media.

The factor in media which makes the consumer more attentive towards the

new, improved and innovative products and technology is Television which

plays important role in advertisement in comparison to others.

LIMITATIONS

1. Lack of time is also a limitation in my project.

2. People don’t want to answer the question so it is very difficult make exact results.

3. Some respondents were biased. they are not interested in advertising.

SUGGESTIONS

Trial packs should be used because customer must have to introduce the product. Once

customer gets idea about product he comes to know advantages of products.

The products should be cheap the home delivery system to deliver the products so the

delivery should be instant.

There must be multiple options for purchasing the products for distributers like online,

tale and instant purchasing.

.

CONCLUSION:

The FMCG industry in India is having huge potential to grow. The Industry is now focusing

towards the semi-urban and rural market for growth as there are many remote areas in our

country which are untouched and they don’t have the exposure to number of alternatives or

brands, so by focusing on these aspects of Indian economy the FMCG sector in India has a huge

potential to grow further.

Further, the companies like TATA and HUL are using CSR i.e. Corporate social

responsibility to further strengthen their brand or create a positive image in the minds of people

thus it will help in increasing their revenues. The advertising campaigns have also changed to the

changing scenario in Indian economy, and the companies in the FMCG sector are becoming

more cautious on making false claims as the consumer in India has evolved and is more informed

than its ancestors.

According to my views the product or the brand or the company which has a positive

image in the minds of the people and which is innovative in its ideas to fast changing consumer

preference and which gives the best value for price is going to survive in the long run or else

they have to either change their strategy or quit the Indian FMCG market.

BIBLIOGRAPHY

www.adv.in

www.google.com

www.India.com

www.agencytags.com

QUESTIONNAIRE

Q1-You are dealing with the FMCG Products from?

5 years

5 years 5-10 years

More than 10 years

Q2-Which products of FMCG are most preferable by customers?

HUL

DABUR

NESTLE

BRITANIA

NIRMA

COCA COLA

Q3. In which season the selling of products is more?

Jan-March

Apr-June

July-Sep

Oct-Dec

Q4.Which factors influence the consumers to purchase the HUL products?

Quality

Price

Sales promotion activities

Brand image

Services

Q5. Media plays an important role of making the awareness of the product. What

do you think?

20%-30%

30%-50%

50%-70%

70%-90%

Q6. What are the factors in media which makes the consumer more attentive

towards the new, improved and innovative products and technology?

Television

News paper

Internet

Magazine

Hoardings